How to Fight Investment Fraud Charges

December 28, 2017
By
Foley Griffin, LLP

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Investment fraud is when a broker or financial firm makes false promises
to their customers and then sells them either ill-advised or phony investments
in order to benefit or harm the victim. There are many different ways
in which investment fraud could occur, and sometimes those who have offered
legitimate investment opportunities may be accused of fraud if the investment
doesn’t work out or the investor simply doesn’t understand
what’s happening with their money. The complexity of some of these
schemes is what makes these cases so intimidating and difficult to navigate,
but rest assured there are defenses available that you and your attorney
may be able to utilize and effectively fight back to preserve your innocence.
Here are just a few of the most common ones.

Unintentional Misinterpretation of Information

Brokers or financial professionals who make a reasonable and honest attempt
to advise their clients and invest their financial resources properly
are have not actually committed any offense. If the accused and their
counsel can successfully demonstrate that they made any of their recommendations
in good faith and that no intentional or reckless misinterpretation or
misrepresentation of information occurred that caused an investor to suffer
a financial loss, then no crime has actually been committed. In other
words, honest incompetence is not considered fraud and therefore not illegal.

No Financial Loss Occurred

In order for fraud to be charged, a broker must have caused one of their
clients to actually suffer a financial loss due to willful and deliberate
misrepresentation of information. If you can demonstrate that no actual
losses occurred, then no defrauding occurred either, and therefore no
actual crime was committed.

Loss Wasn’t Due to Supplied Information

The stock market is a fickle beast and what appears sunny and rosy one
day may quickly plunge into nothingness the next, resulting in devastating
losses for all investors involved. Some frustrated investors may accuse
their brokers of fraud when this happens, but unless the broker knew the
crash was imminent and still deliberately misrepresented the status of
an investment for their own benefit, then no fraud actually occurred.
The stock market can change and investments can fail, but investment fraud
can only be charged when a broker or financial professional misleads investors
and either causes this failure or gains from it in some way.

If you’re accused of investment fraud, get help from a Nassau County
criminal defense attorney!
Consult with Foley Griffin, LLP today by dialing (888) 966-8480 for a case evaluation.

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